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Thursday, February 25, 2010

CARREFOUR BELGIUM CLOSES 21 STORES

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Brussels, Belgium ( February 23, 2010 ) Carrefour Belgium SA, the Belgian arm of the world’s No. 2 retailer, said Tuesday that it would close 21 stores, lay off at least 1,700 workers and sell 30 of its outlets to cut costs and reverse declining market share.

The retailer said it had misread its market. "We waited too long to adjust our strategy to the Belgian market," Belgian company CEO Gerard Lavinay said in a news conference. "We must conclude Belgians consume differently than the French."

MBA IDEA

Divestment is a form of retrenchment strategy used by businesses when they downsize the scope of their business activities. Divestment usually involves eliminating a portion of a business. Firms may elect to sell, close, or spin-off a strategic business unit, major operating division, or product line. This move often is the final decision to eliminate unrelated, unprofitable, or unmanageable operations.